The Psychology Of Pricing - Part 6 - RD269

<p>I’m happy to announce that this week is, in fact, the final part of my Psychology of Pricing series, where I share research-proven tactics to make the most out of the prices you display. If you haven’t listened to the <a href= "https://resourcefuldesigner.com/episode264">previous parts in this series</a>, I suggest you go back and do so before continuing with this one. I'll still be here once you’re done.</p> <p class="p1">These pricing tactics are great to use in your design business. But the real gem here is they can make you look like a pricing guru to your clients. Imagine improving their conversion rate simply by manipulating the way you display their prices. They’ll be throwing money at you.</p> <p class="p1">As in the previous episodes. All of these tactics I’m sharing come from <a href= "https://www.nickkolenda.com/psychological-pricing-strategies" target="_blank" rel="noopener">Nick Kolenda</a>. Specifically, an article on his website nickkolenda.com titled appropriately enough The Psychology of Pricing.</p> <h2 class="p1">The Psychology Of Pricing - Part 6</h2> <p class="p1">In the previous five parts of this series, I shared various ways to manipulate how a price is displayed to improve sale conversions. In this last part of the series, I’m going to share how to use discounts properly.</p> <p class="p1">According to Nick, if not used properly, discounts can actually harm your business. In fact, some people suggest you should never use discounts. That may be a bit extreme. Discounts can prove useful if you know how to use them properly.</p> <p class="p1">But how can offering a discount backfire?</p> <p class="p1">For one, if you offer discounts too frequently, customers will become more price-conscious and wait for the next discount.</p> <p class="p1">Offering discounts can also lower the reference price of a product. I’ve talked about reference prices in previous parts of this series and how they create the bar by which consumers judge other prices. Offering a discount can lower the reference price,